Importantandurgent !!! “If you want to get higher score from acca f1, please read this article!”



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I M P O R T A N T A N D U R G E N T

Cyclical or demand-deficient

– This is also known as demand deficient, persistent or Keynesian unemployment. – It is caused by aggregate demand in the economy being too low to create employment opportunities for everyone that wants a job.
– It tends to occur in the ‘bust’ period of the trade cycle.
– The Keynesian solution would be to boost aggregate demand (perhaps by running a budget deficit).
– Monetarists would continue to remove market imperfections, as they feel that this will naturally move the economy further towards full employment.



  1. Fiscal policy

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